CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

Covid-19 sparked a digital banking frenzy in Nigeria. Financial transactions have become easier and more available since the advent of mobile banking and Point of Sale terminals as an offshoot of electronic banking. E-payment services have become the last resort of man following the Covid-19 induced lockdown. In those week month of global lockdown, many Nigerians relied on Point of Sale (POS) machines, cash back mechanism, Paga services and other mobile banking services which redefined how people live and do business during  the Covid-19 pandemic(Adewuiyi 2020). In the first three months after COVID-19 emerged Wuhan City, Hubei Province, China, a devastating number of new cases were reported across China and several countries around the world.  And it was finally declared as a global pandemic by the World Health Organization (WHO) on March 2020 (WHO 2020). Evidence indicates that COVID-19 transmitted through respiratory droplets via contact routes such as the mouth, nose, and conjunctiva or eyes (UNICEF 2020).To reduce the spread of the novel COVID-19, governments enacted mitigation strategies based on social distancing, national quarantines, and shutdown of of all sectors of the economy. The halt to the economy represented a large shock to the corporate sector including the shutting down of financial institution which led to the scramble for cash of the common man in the country. The shutting down of banks gave birth to the increase need for accounts holders to seek for alternative means of accessing and withdrawing of money as it is necessary for them to survive even during the lockdown. However this gave retail business owners edge to open POS business centre especially those operating in remote areas since financial institutions are not operating. A Point of Sale (POS) Terminal is a mobile machine that accepts bank cards as payment for goods and services. It gives you real-time online access to funds and details in your bank account through debit or cash cards as a cardholder. It enables people to carry out wide range of financial transaction without going to the bank. ranging from paying cable bills to electricity bills. Other small business owners go so far as to provide cashback to their clients, which essentially allows them to earn interest on the debit or credit transactions they provide.Cash back is a credit card perk that rewards the card holder's account with a small percentage of the amount paid on purchases (Investopedia 2021). The convenience and comfort of being able to walk into a POS business centre to carry out financial transactions at ease and more so being able to pay for goods and services from any point of transaction, using mobile payment system made financial life easy during the covid-19 lockdown  which on the other hand enhanced the survive-ability of the common man in the face of that world health crises.

1.2 STATEMENT OF THE PROBLEM

The Covid-19 crisis has forced retailers to transform at a speed hardly seen before in the industry. In just a few months’ time contactless shopping and payments have become mainstream. The covid-19 pandemic brought the world into exceptionally difficult and largely uncharted waters and Banks sector like other sectors of the country was on lockdown and during this period it was difficult for account holders to access their saved money. The implication of this is detrimental for the survival of common man. Thus was a need for citizen to take an alternative source for accessing and withdrawing their money. This gave rise to the increase usage of mobile banking and Point of Sales terminal. Not only does the POS system aids in the easy access of money, it enables Increased efficiency, expanded payment capabilities, greater accuracy, inventory management for business owners, reporting and detailed receipts. Therefore it is on this note that this study is set to examine the impact of POS usage during covid-19 lockdown.

1.3 OBJECTIVES OF THE STUDY

The focus of this study in general is to examine the impact of POS  usage during lock down. Specifically the study will:

1. Examine the financial services POS machine can render

2. Examine if the use of POS was helpful during covid-19 lockdown.

3. Investigate the extent at which people used POS terminal during covid-19 lock down.

1.4 SIGNIFICANCE OF THE STUDY

This study will be relevant to the general public especially on the need to appreciate the invention of POS as a advancement in electronic banking.It will sensitize financial institutions on the need to encourage interested entrepreneurs to set up POS business by  making the procedures less cumbersome for those interested to venture into such business. Finally this study will be relevant for further academic research on this field, contribute to the general body of knowledge and serve as a reference material for other researcher.

1.5 SCOPE OF THE STUDY

The focus of this study in general is to examine the impact of POS  usage during lock down. Specifically it will examine the financial services POS machine can render. It will examine if the use of POS was helpful during covid-19 lockdown. It will investigate the extent at which people used POS terminal during covid-19 lock down. However this study is delimited to selected towns in Lagos State.

1.6  RESEARCH QUESTION

The following research question guided the study:

1. What are the various financial services POS machine renders?

2. Do you think the use POS was helpful during covid-19 lockdown. In Lagos State?

3. What is the extent at which people use POS terminal during covid-19 lock down?

4. Do you think there is a significant impact of POS usage on the survivability of man during covid-19 lock down

5. What are the  benefits of POS usage during covid-19 lock down

1.7 LIMITATION OF THE STUDY

During the course of the study challenges encountered were exclusively but not delimited to the following numerous. These are

l  Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

l Time constraint: time factor pose another constraint since having to cope in this research which went simultaneously within the time schedule of other academic work making it impossible to undertake this study in large more representative skill.

1.8 DEFINITION OF TERMS

POS: A point-of-sale (POS) terminal is a hardware system for processing card payments at retail locations. It has software to read magnetic strips of credit and debit cards. The point of sale or point of purchase is the time and place where a retail transaction is completed. 

POS business: POS business is a legitimate way to make money in Nigeria. It is also called agent banking business, and it's an extension of the services offered by financial institutions to enable easy service offering to a wide range of customers.

COVID-19: Coronavirus disease 2019 (COVID-19) is defined as illness caused by a novel coronavirus called severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2; formerly called 2019-nCoV), which was first identified in  Wuhan City, Hubei Province, China.

LOCKDOWN: A lockdown is a restriction policy for people or community to stay where they are, usually due to specific risks to themselves or to others if they can move and interact freely. 

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